Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 559 entitled:

begs leave to report as follows:

The purpose of this bill is to support small businesses through set-asides and the establishment of evaluation criteria that encourage the use of small businesses as subcontractors on large contracts.

The Department of Business, Economic Development, and Tourism, Department of Accounting and General Services, Hawaii Technology Trade Association, and The Chamber of Commerce of Hawaii testified in support of this bill. The State Procurement Office supported the intent of this measure.

Your Committee finds that small businesses, which are major contributors to Hawaii's economy, deserve to have more opportunities to compete for state contracts. By establishing rules to create set-asides and encouraging large contractors to use small businesses as subcontractors in their projects, the State will provide small businesses with a greater opportunity to flourish in Hawaii's marketplace.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 559 and recommends that it pass Second Reading and be referred to the Committee on Finance.